More Nassau cutbacks

[RadioCIA]

I've never seen NHRadio & Splicer38 in the same room.......hmmmmmmmmm.

Thanks makes probuttonpusher...Lexanna Luthor.

[probuttonpusher]

really,I like Lexy Luthor better 
Some people may not agree, but I am not pure evil

[NHRadio]

I barely know PBP and don't think she's pure evil. She sounds good on ZID.  I'd love to know Splicer's secret identity, though. He/She claims to not be a Nassau employee so that narrows it down a bit. I'd be grateful if you sent me a PM...I promise to keep your secret. 

[splicer38]

I barely know PBP and don't think she's pure evil. She sounds good on ZID.  I'd love to know Splicer's secret identity, though. He/She claims to not be a Nassau employee so that narrows it down a bit. I'd be grateful if you sent me a PM...I promise to keep your secret. 

    Only the Shadow knows!  I will tell you I don't know Eric or PBP.  Not Nassau... now or ever.   Just an interested bystander watching radio continue to devalue day by day.  If these groups are going to sell they better do it fast before all value is lost and other larger companies like Clear Channel start flooding the market with their junk.  That's what I see and it's sad. 
     The boys at Sconnix got out at the perfect time... Think they got $6M. Too bad Jeff Fisher didn't.  Value of his group is like the mansion on the hill devaluing because everyone around him is going bankrupt and being forclosed on!  What's it worth now?  I would think 4 years ago he could have gotten $6M.  If you see the purchase stories from around the country and what Nassau is going, through maybe a little over a million? 2 max? Good thing he's happy and not ready to retire.  maybe the value comes back in a few years.  Maybe ad another stick and keep kickin' Butt!  He's a great operator and we need more like him.

Mr. Scott What is your EM?  I'd be happy to talk to you.  I also meant what I said.  I like your work.

[NHRadio]

I don't remember exactly what Telemedia gave Sconnix for LNH/EMJ/BHG but it was more than its worth now, thats for sure. Are station values really falling or are they just recovering to "normal" after the irrational exuberance of 1996-2006?
Station values, as you probably know, are usually a function of cash flow. At their peak, 9 or 10 times trailing cash flow was considered normal especially in large markets. Now, you're looking at 4 or 5 times a much smaller cash flow number. Example:
A Class A licensed to Alameda, CA just sold for $6.5 million. It's owners bought it for 32 or 33 million just a few years ago.
Ouch.
PS-Splicer, thanks for the kind words.

     The boys at Sconnix got out at the perfect time... Think they got $6M. Too bad Jeff Fisher didn't.  Value of his group is like the mansion on the hill devaluing because everyone around him is going bankrupt and being forclosed on!  What's it worth now?  I would think 4 years ago he could have gotten $6M.  If you see the purchase stories from around the country and what Nassau is going, through maybe a little over a million? 2 max? Good thing he's happy and not ready to retire.  maybe the value comes back in a few years.  Maybe ad another stick and keep kickin' Butt!  He's a great operator and we need more like him.

Mr. Scott What is your EM?  I'd be happy to talk to you.  I also meant what I said.  I like your work.

[Gadon]

I don't recall Telemedia ever winding up with the former Sconnix stations, NHRadio..  The Sconnix stations in the Lakes Region were sold to Nassau.. (Very late 2003, very early 2004ish ??).

[NHRadio]

Gadon, you're right. I know Telemedia sold a bunch of NH stations to Nassau but the Village West stations went directly from Sconnix to Nassau. Mea culpa.
That'll teach me to rely on my memory.

I don't recall Telemedia ever winding up with the former Sconnix stations, NHRadio..  The Sconnix stations in the Lakes Region were sold to Nassau.. (Very late 2003, very early 2004ish ??).

[Gadon]

That's what your pals are here for..

[splicer38]

WLNH/WEMJ/WBHG were sold to Nassau Broadcast Holdings direct from WLNH Radio Inc. in Jauary 2004 for $5M.  Transfer approved by FCC on 3/24/04.  The acquired WLKZ from Telemedia as part of the WNNH/WHOB/WLKZ deal for around $12M in 2004.  Values now?

I don't recall Telemedia ever winding up with the former Sconnix stations, NHRadio..  The Sconnix stations in the Lakes Region were sold to Nassau.. (Very late 2003, very early 2004ish ??).

NH Radio:  How do you figure out cash flow when all of these stations are co-habitating ans sharing costs?  How do you value a dark station?  Selling 99.1, 102.3 and 101.5 creates an unknown value.  I guess you could look at top line sales and use a multiplier for the ones still on the air.  I would not want to be the seller in this deal.  Hard to justify the sales price of the 3 they want to move.  maybe look at the deals nationally, try to figure out what the value of the 3 were in those deals above and use an average "haircut".  That sounds even more comlicated!  For instance... IF you assaign the following past values:  102.3 $1M, 99.1 was $2M and 101.5 1M and then use Alameda as a benchmark which was 20% of value... Those 3 would be worth 800K.  Hard to beleive. Again, I would not want to be the seller!

Station values, as you probably know, are usually a function of cash flow. At their peak, 9 or 10 times trailing cash flow was considered normal especially in large markets. Now, you're looking at 4 or 5 times a much smaller cash flow number. Example:
A Class A licensed to Alameda, CA just sold for $6.5 million. It's owners bought it for 32 or 33 million just a few years ago.
Ouch.

[/quote]

[NHRadio]

Fairly easily actually. AFAIK, revenue is booked on a per station basis anyway, and each station has its own costs like utilities, music licensing, sales commissions, engineering, etc. Some companies charge a jock's salary to one station, some share the expense.
Any shared costs like labor, insurance, rent/mortgage, and G&A are allocated to each station or business unit. The exact percentages will vary from cluster to cluster.
Anyone doing due diligence should be able to see cash flow broken out by station. I have no idea how one values a dark station...my guess is kind of like a used car...it's worth what someone wishes to pay for it.

NH Radio:  How do you figure out cash flow when all of these stations are co-habitating ans sharing costs?  How do you value a dark station?